S&P/ASX 200 Index (ASX: XJO) energy shares are on the move this morning. Shares in some of the biggest Aussie oil and gas explorers and producers have edged higher in early trade on Thursday despite broader market weakness.
Here's why the spotlight is on some of the biggest names amongst the ASX 200.
Image source: Getty Images
Why ASX 200 energy shares are in the spotlight
The term "energy crisis" is cropping up in all sorts of media right now. One of the reasons that ASX 200 energy shares like Oil Search Ltd (ASX: OSH) have been rocketing higher recently is because of this crisis.
In Europe, energy demand is far outstripping supply at the moment. This market imbalance has seen energy prices shoot through the roof. Global benchmark Brent crude prices recently topped US$80 per barrel for the first time in 3 years.
According to an article in the Australian Financial Review (AFR), Australia could have an opportunity amid the looming global crisis. As a major energy exporter, gains from energy supply could help offset the recent iron ore price slump.
As gas and coal prices continue to surge, ASX 200 energy shares that export to other countries could be thrust into the spotlight. That includes the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).
Australia was the largest supplier of China's imported liquid natural gas (LNG) last year, meaning any price rise could be good for these exporter's revenue.
Continued supply disruptions, including in the major production regions of Russia, have sent petrol and gas prices surging in Europe. Given the significant production capacity that these ASX 200 energy shares boast, they could be in the spotlight for quite some time to come.
Foolish takeaway
ASX 200 energy shares have experienced an up and down year on the markets. News of mergers has captured investors' attention while volatile pricing has made them worth watching.
With the broad market experiencing heavy losses in early trade, these Aussie energy companies remain worth watching throughout 2021.
